The airline applied for the funding through the normal Treasury process and put up its loyalty rewards program as collateral, according to Treasury. The airline loan shows how complicated the government’s bailout process remains, 10 months after the coronavirus pandemic first appeared in the United States. In July, the Treasury Department made a $700 million loan to YRC Worldwide, a struggling trucking company backed by Apollo. A Treasury spokesperson said the department discussed the YRC loan with Apollo to determine the size and structure, and secure its agreement to change Apollo’s loan structure to permit the Treasury loan. Unlike Sun Country, YRC was in a precarious spot long before the pandemic hit.

Source: Washington Post November 10, 2020 16:31 UTC